Implied Call
A right given to mortgage borrowers that allows them to call or pay-back a loan at any time. The call is implied, as it is included in most mortgages unless specified otherwise. Investopedia Says:
The implied call allows a borrower to refinance a mortgage when interest rates drop. In this case, the borrower will take out a new mortgage at the lower rate, using its proceeds to call the original debt. Related Terms:
Call Provision
Callable Bond
Mortgage
Refinance
Refinancing Risk |